City, schools come to agreement on TIF district, new waste contract signed

Steve Klein of The Economic Development Group, Ltd., gave the Carthage city council copies of the final drafts of agreements with the Carthage Elementary School and Illini West High School districts on the tax increment financing (TIF) district. The agreements are identical except for the name of the individual school district.

The sticking point was money. The TIF district captures all new growth in assessed valuation within the district after the base year and allocates it to a special account. Money in this account is used by the city for improvements and economic development within the TIF district.

School districts are funded through property taxes and state aid. Normally state aid is decreased as property taxes rise due to increased assessed valuation. The state does not count increases in TIF districts in its state aid formula.

The city agreed to reimburse some of that money going to the TIF district with a cap of 25 percent.

“If there is no growth (in the TIF district), then there are no funds in it and there is no refund (to the schools),” said Klein.

The money given back to the school districts must be used for capital costs, according to the laws governing TIF districts. The school districts are providing a letter and the annual audit report showing how they spend the money each year. Capital expenditures are governed under Illinois law. They include things like land acquisition, remodeling, playground equipment, water and sewer connections, parking lots, sidewalks, sports fields and more.

The school districts agreed to waive all rights to object to a plan, the area or participate in any lawsuit challenging the TIF district. They also fully indemnified the city if there was a future challenge to their capital expenditures.

Tax bills now include a line item showing the amount of money collected in the TIF district.

The council approved a new four-year garbage and curbside recycling contract with Disposal Pro, Inc., which takes effect in April. The agreement is nearly identical to the current deal.

The charge in the first year of the contract for trash pickup is $15 per residence and $12.50 for senior citizens. The allowable fee increase in year two is up to $.50. The allowable fee increase in year three and four of the contract is up to 5 percent each year.

Curbside recycling remains a weekly service.

Services included in the contract are a toter and service for city hall, a dumpster and service for the city garage, service for the trash cans around the square, and a dumpster and service at the water plant.

The city agreed to pay up to $1,500 each year for the annual clean-up days with Disposal Pro, Inc. covering the rest of the cost.

Customers wanting an extra toter $3 per month.

Engineer Terry Knoke of Poepping, Stone, Bach & Associates said a cost estimate for a test well should be done by March.

“It will be as good an idea as we have for the cost of drilling a test well so you can budget for it,” said Knoke.

Knoke said they are still looking at painting versus getting rid of the older water tower near the fire station. The newer water tower near Methode Electronics can handle water pressure for the entire town.

Kibbe Museum and the Hancock County Historical Society reached an agreement on use of the museum.

Steve and Karol Carr spoke to the council about zoning approval for their new bed and breakfast business on Main St. The only ordinance on the books which comes close to covering a bed and breakfast business is one on boarding houses.

“I'd rather have a bed and breakfast ordinance in place than use an old boarding house ordinance. I don't think it fits,” said Nightingale.

The Carrs have three letters of support from immediate neighbors.

The council votes Feb. 12 on the ordinance after it goes through Committee.

Franklin Hartzell, chairman of the Plan Commission, asked the council to budget money to address the zoning laws for the whole town. He said the zoning laws on the books were last done in 1967.

“I know we're working on the east side of town and there is the question of the (former) college,” said Hartzell. “I urge the council to put it all together and bring it up to date.”

Potholes on city streets remain for the near future because of the colder weather and the lack of asphalt mix on hand to fill them. The street department plans to fill them when the weather warms up.

Alderman Gary Smith said the fire department approved use of the fire station for a Hancock County ESDA meeting for storm spotters. He offered the use of the city hall council meeting room as another option.